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New PAYE system: News for agents

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23rd Nov 2009
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HMRC's new computer system for PAYE and NIC is anticipated to bring huge benefits, but is not fully operational yet. HMRC has listed the key areas which may affect agents and what work is under way.

The new PAYE service which gives a 'whole employee' view rather than a 'whole employer' view is being introduced in phases. The main launch occurred in the early summer of 2009, and further releases will be made in November 2009 and April 2010.

There are a number of issues with notices of coding and related matters that HMRC have brought to the attention of agents, with details of whether these have already been fixed or whether there is still additional work to do. In some cases, agents may need to work around an issue while HMRC works to resolve it. A full list of the issues and consequences is on the HMRC website, but here are the areas affected:

Resolved issues

  • Underpayments omitted from code if codes amended in July.
  • Incorrect coding of Married Allowance if one partner is over 75.
  • National Insurance Benefit (NIB) first coded, incorrect underpayment is calculated.
  • Reduced Revenue Allocated Accounts for Child Trust Funds (RAA).
  • Matching P14s to an individual’s employment record.
     

Outstanding issues

  • Reference numbers produced by NPS may be in upper case and without punctuation - cannot be changed at present.
  • Calculations will not be issued to an agent where a person is acting in another capacity - ask for a copy from agent dedicated helpline.
  • Some notices/statements have been sent to the wrong agents - fix to be implemented in December 2009.
  • Married Couples Allowance (MCA) is not included in the code number - work going on to implement allowances in future.
  • Underpayments carried forward from previous years omitted from NPS - in some cases this is a problem. Manual corrections now being implemented.
  • Repayments for earlier years - not issued automatically and no P800T issued - will be corrected in April 2010. Manual reconciliation at present.
  • State pension disappearing from code numbers - this only affects part year pension entitlement from 2008-09. This will be corrected at end of year.
  • Migration of benefit data to NPS - work still under way to identify the cause.
  • Incomplete starter and leaver information submitted online - it is very important that online submissions have all mandatory fields completed as this can cause problems with employee record.
  • Unlinked reference numbers - new issue November 2009, work underway to identify cause and resolve.
  • P161 form incorrectly issued to agent - these have been issued in error and work is still going on to resolve - although a fix should be complete in December 2009. Agents can destroy forms as client has a copy.

For more information see the detailed list of issues for agents. Contact HMRC using the agent dedicated numbers for more help.
 

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